On December 31, 2025, Sunland Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sunland Co. agreed to accept a $293,800 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sunland is much more creditworthy and has various lines of credit at 6%. (a) Prepare the journal entry to record the transaction of December 31, 2025, for the Sunland Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Dec. 31, 2025 Account Titles and Explanation Debit Credit
On December 31, 2025, Sunland Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sunland Co. agreed to accept a $293,800 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sunland is much more creditworthy and has various lines of credit at 6%. (a) Prepare the journal entry to record the transaction of December 31, 2025, for the Sunland Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Dec. 31, 2025 Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Rakesh
Transcribed Image Text:On December 31, 2025, Sunland Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and
Sunland Co. agreed to accept a $293,800 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is
somewhat of a credit risk and typically borrows funds at a rate of 11%. Sunland is much more creditworthy and has various lines of
credit at 6%.
(a)
Prepare the journal entry to record the transaction of December 31, 2025, for the Sunland Co. (Round present value factor
calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required,
select "No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented
when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Date
Dec. 31.
2025
Account Titles and Explanation
Debit
Credit
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